A metric used to measure the financial performance of a short-term rental property, calculated as the annual rental income divided by the property value.
Menu
Glossary Term: Return on Investment (ROI)
8 posts
A measure of the profitability of a rental property, calculated as the annual rental income divided by the property value.
Analyzing key financial metrics such as occupancy rate, average daily rate, and net income to evaluate the profitability and success of a short-term rental property.
The profit generated from a short-term rental property after deducting all operating expenses, including cleaning fees, property management fees, and platform commissions, from the rental income.
The profitability of a short-term rental, calculated by subtracting expenses (cleaning, fees, etc.) from rental income.
The financial return generated by a short-term rental property, calculated by dividing the net rental income by the property’s value or investment cost.
A metric used by investors to assess the potential profitability of a short-term rental property, calculated by dividing the projected annual rental income by the monthly mortgage payment.
A metric used to measure the potential profitability of a short-term rental property, often calculated as the annual rental income divided by the property value.